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Minnesota Petroleum Marketers Association

Forms: Below Cost Forms

For Minnesota Statute 325D.71
Use this form to make a complaint about a possible violation of the Below Cost Law in the State of Minnesota.

Forms: 8849 and Related

Alcohol and Bio-diesel Blend Tax Refund 8849, Schedule 1, 2, 3, 4, 5, 6, 720, 637

Background

On March 2, 2005, the IRS released the new form 8849, schedule 3 and its related instructions. This form is used for making claims on Alcohol and Bio-diesel mixtures. The amount and nature of these claims was changed by the JOBS act effective January 1, 2005. Prior to 2005 there was no credit for bio-diesel blends and a series of reduced rates of tax due on alcohol blends. The JOBS act eliminated the reduced rate system and created a new refund system for both alcohol and bio-diesel blends.

Click here to see full explanation from PMAA.

8849 - Claim for Refund of Excise Taxes

Form 8849 & Instructions

For alcohol fuel mixtures and biodiesel mixtures, you may file Schedule 3 (see below) when the amount of the refund is $200 and the period of the claim is at least one week. Note: You may combine alcohol and biodiesel amounts to reach the $200 minimum.

Reminder: Before you can claim a credit on Form 8849, the alcohol fuel mixture and biodiesel mixture credit must be taken against any taxable fuel liability on Form 720 (Quarterly Federal Excise Tax Return). Any credit in excess of 720 liability can be taken in the form of a refund on the Form 8849 or as an income tax credit on Form 4136.

Biodiesel Certificate from Producer - Note: Before you can make a claim for the biodiesel mixture credit, you must have a certificate from the producer specifying the amount of biodiesel or agri-biodiesel in the mixture.

IRS Registration. Blenders of alcohol fuel mixtures and biodiesel mixtures must be holder of an IRS 637 (see below) "M" Registration. Blenders who currently have a 637 "T" Registration will be considered a 637 "M" registrant until July 1, 2005.

Schedule 1 - Nontaxable Use of Fuels
Schedule 2 - Sales by Registered Ultimate Vendors

Schedule 2 of the Form 8849 is used for claims by ultimate vendors involving tax-exempt sales of undyed diesel fuel, undyed kerosene, aviation-grade kerosene, gasoline and aviation gasoline to farmers, state and local governments, intercity and local buses, nonprofit educational organizations and commercial aviation.

Schedule 3 of the Form 8849 is used to claim refunds for alcohol fuel mixtures and biodiesel mixtures in excess of your taxable fuel liability reported on the Form 720.

Schedule 3 - Alcohol Fuel Mixtures and Biodiesel Mixtures

Schedule 3 of the Form 8849 is used to claim refunds for alcohol fuel mixtures and biodiesel mixtures in excess of your taxable fuel liability reported on the Form 720.

Schedule 2 of the Form 8849 is used for claims by ultimate vendors involving tax-exempt sales of undyed diesel fuel, undyed kerosene, aviation-grade kerosene, gasoline and aviation gasoline to farmers, state and local governments, intercity and local buses, nonprofit educational organizations and commercial aviation.

Schedule 4 (sales by Gasoline Wholesale Distributors) of the former 8849 has been eliminated.

Schedule 5 - Section 4081(e) Claims
720 - Quarterly Federal Excise Tax Return

Reminder: Before you can claim a credit on Form 8849, the alcohol fuel mixture and biodiesel mixture credit must be taken against any taxable fuel liability on Form 720. Any credit in excess of 720 liability can be taken in the form of a refund on the Form 8849 or as an income tax credit on Form 4136.

Parts I and II of the Form 720 are used for reporting tax liability; Schedule C of Form 720 is used for claims in excess of that liability.

720X - Amended Quarterly Federal Excise Tax Return

Reminder: Before you can claim a credit on Form 8849, the alcohol fuel mixture and biodiesel mixture credit must be taken against any taxable fuel liability on Form 720. Any credit in excess of 720 liability can be taken in the form of a refund on the Form 8849 or as an income tax credit on Form 4136.

Parts I and II of the Form 720 are used for reporting tax liability; Schedule C of Form 720 is used for claims in excess of that liability.

637 - Application for Registration (For Certain Excise Tax Activities)

The Form 637 is used to register with IRS for numerous activities including the "M" registration ("blender of taxable fuels outside the bulk transfer/terminal system") necessary to certify you as a blender of alcohol fuel mixtures or biodiesel mixtures. Note: If you currently are the holder of a "T" registration ("buyer of gasoline for blending into gasoline outside the bulk transfer/terminal system"), you may use that registration until July 1, 2005, at which time you will be required to have the "M" registration to continue blender activities.

Marketers who sell undyed diesel or undyed kerosene to intercity buses must apply for a "UB" registration. If a marketer has a current Ultimate Vendor registration, IRS will accept "UV" refund claims in lieu of "UB" until June 30, 2005.

Marketers who sell tax exempt gasoline to state an local governments must have or apply for a "UV registration. Those who are current "UV" registrants for diesel or "UP" registrants for kerosene will be treated as gasoline "UV" registrants by IRS automatically and do not need to reapply.